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Bill Dudley, the former president of the US Federal Reserve Bank of New York, warned that investment in artificial intelligence infrastructure could exceed 10 trillion US dollars, or cause large-scale overcapacity. Dudley estimates that out of the current 7 to 8 companies interested in becoming AI hyperscale enterprises, only 2 to 3 will eventually dominate the market. AI infrastructure may require more than $3 trillion in revenue each year to cover its investment costs. Opaque private credit financing, off-balance sheet debt, and Nvidia's chip value guarantee further increased risk.
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Bill Dudley, the former president of the US Federal Reserve Bank of New York, warned that investment in artificial intelligence infrastructure could exceed 10 trillion US dollars, or cause large-scale overcapacity. Dudley estimates that out of the current 7 to 8 companies interested in becoming AI hyperscale enterprises, only 2 to 3 will eventually dominate the market. AI infrastructure may require more than $3 trillion in revenue each year to cover its investment costs. Opaque private credit financing, off-balance sheet debt, and Nvidia's chip value guarantee further increased risk.
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